=+c. Assuming that short-term funds cost 5% annually and that the cost of long-term funds is 10%

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=+c. Assuming that short-term funds cost 5% annually and that the cost of long-term funds is 10% annually, use the averages found in part a to calculate the total cost of each of the strategies described in part

b. Assume that the firm can earn 3%

on any excess cash balances.

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Principles Of Managerial Finance

ISBN: 9781292261515

15th Global Edition

Authors: Chad J. Zutter, Scott Smart

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